Lawmakers reject tax break for Groton grain elevator

PIERRE — Legislation that would have helped a Groton agriculture producer with his property taxes has been set aside, at least for this year.

The purpose of House Bill 1078 was to create a special classification for grain elevators that are converted to farming purposes from their original uses for shipping and commercial storage.

House Bill 1078 was sponsored by Rep. Paul Dennert, D-Columbia. It would have set criteria for the elevators to be taxed as agriculture property rather than commercial property.

The House of Representatives passed it 46-23. But the Senate committee on appropriations saw the matter in a different light and killed the bill on a 7-2 vote Monday.

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Dennert brought the legislation on behalf of Roger Rix, who is using an elevator at Groton as part of his operation.

Dennert disagreed with the state Revenue Department’s position that such elevators should be taxed as commercial.

He said that a structure used by “a true aggie” for agricultural purposes shouldn’t be taxed as commercial property.

Sen. Jim Putnam, R-Armour, supported Dennert’s effort and tried to get the bill endorsed by the committee. Putnam said that if the structure was on land abutting a farm it would be taxed as agricultural property.

Others on the committee said it was a matter for county officials to decide as part of their annual work in setting property valuations.

Sen. Deb Peters, R-Hartford, said there is an appeal process at the county level that should be followed, rather than circumventing that process by bringing legislation.

The decision can be made more easily at county level rather than bringing it to the state level, Sen. Jeff Haverly, R-Rapid City, said.